Financial Reporting Standard for large and Medium-Sized Enterprises published in the Official Gazette

PRESS ANNOUNCEMENT

(For large and Medium Enterprises

The Financial Reporting Standard Has Been Published.)

Oct July 29, 2017” communiqué on Financial Reporting Standard for large and medium-sized enterprises “and annex” Financial Reporting Standard for large and medium-sized enterprises " were published in the Official Gazette numbered 30138.

The Financial Reporting Standard (BOBI FRS) for large and Medium-Sized Enterprises is the Financial Reporting Framework to be implemented by enterprises that are subject to independent audit and do not apply Turkish Financial Reporting Standards (TFRS). The aim of BOBI FRS is to ensure that fair, appropriate financial information needs and comparable financial statements are issued.

Turkish Commercial Code numbered 6102 (TCC), 88th and Temporary Article 1, in accordance with who is responsible by law for keeping a notebook that are subject to its consolidated financial statements individual or natural or legal entities with public oversight accounting and Auditing Standards Institution published by the International Accounting Standards (IAS), it was stipulated that they should prepare in accordance with. In addition, in the same articles, our institution is authorized to set special standards and make regulations for different business sizes and sectors.

In accordance with these articles, our institution has provided for the application of TFRS in the individual and consolidated financial statements of businesses subject to independent audit for the 2013 reporting period. However, it has been estimated that determining the scope of TFRS implementation as the same as the scope of independent audit will force a large number of enterprises under a certain size to apply a more complex set of Standards, TFRs, which will impose additional costs on these enterprises by expanding the scope of independent audit in subsequent years. On the other hand, the European Union (EU) countries and other developed countries when looking at the practices of International Financial Reporting Standards (IFRS) the scope of the application only prevent businesses traded in the stock market where enterprises of different sizes that are not traded in the stock market less expensive and simpler compared to IFRS for financial reporting frameworks, it is observed that the implementation created.

For these reasons, in 2014, our institution separated the scope of TFRS application from the scope of independent audit and limited the scope of TFRS application to public interest organizations (KAYIK) in general, as well as other country applications. In addition, businesses other than Kayiks are also allowed to apply TFRS on demand. It has been decided that businesses that do not apply TFRS will apply the applicable legislation until a determination is made by our institution. In this context, businesses that do not impose TFRs, the current financial reporting framework by the Ministry of Finance 26/12/1992 first date, 21447 (M) by implementing the accounting system general communiqué published in the Official Gazette (MSUGT) has been identified as.

In Msugts issued on the basis of the Tax Procedure Law, the primary purpose was to show the status of the financial statements against the tax of the taxpayers, so that the financial statements diverged from the purpose of providing fair, appropriate and comparable information. For this reason, a comprehensive arrangement is made in order to address the aforementioned shortcomings by our organization until the independent audit is subject to TFRS in addition to the preparation of financial statements of enterprises that do not msugt by The Decision No. 41 dated 29/12/2014 to be implemented in the Assembly “in the preparation of the financial statements of the company TMS who does not additional considerations to be applied” was released. This arrangement aims to introduce basic rules (such as depreciation and severance pay provision becoming mandatory) on issues that are not included in Msugts or left discretionary.

BOBI FRS will replace MSUGT and additional considerations in businesses that are subject to independent audit and do not implement TFRS. In other words, BOBI FRS will be the financial reporting framework that will be based on the preparation of financial statements that will be presented to the general meetings of companies that are subject to independent audit and do not implement TFRS in accordance with the TTC. In addition, any company subject to outside independent audit of FRS Bobi the boat in general in an audit of financial reporting and form the yardstick with international standards due to the provision of the audit will be an important step in our country.

BOBI FRS entered into force on the date of publication, to be applied in the account periods starting on 1/1/2018 and beyond.

According to our institution data, there are 6,250 companies that signed an independent audit contract in 2016. Of these companies, 1,550 companies that meet the definition of KAYIK apply TFRS, and the remaining 4,700 companies will implement BOBI FRS from 1/1/2018.

General characteristics of BOBI FRS

It is possible to summarize the general characteristics of BOBI FRS as follows:

It consists of 27 chapters. It defines the accounting principles for all accounting transactions that businesses may encounter in general. In this aspect, it allows you to prepare financial statements without the need for another set of standards.
It has all the characteristics required by an acceptable financial reporting framework.
It complies with international accounting and financial reporting practices and EU regulations.
In accordance with the “Think Small first” approach in the EU accounting directive, cost-based financial reporting was generally provided for medium-sized enterprises, while additional obligations were introduced for large enterprises.
Examples of individual and consolidated financial statements are included in the annex.
The Appendix also contains a dictionary of terms.
The subjects are written in plain and understandable language.
 

25 Introductory Meetings Will Be Held In 24 Provinces.

Public oversight accounting and Auditing Standards Authority by officials and experts, the volume of business as large and medium-sized enterprises where more 24 25 meeting (two meetings in Istanbul) FRS Bobi will promote organizing. Meeting dates with these provinces in the coming days on the website of the public surveillance agency (kgk.gov.tr) will be explained.

It is announced respectfully to the public.

Source: kgk.gov.tr